Electricity Industry Act 2010

Public Act2010 No 116
Date of assent5 October 2010
Commencementsee section 2

Contents

1 Title

2 Commencement

3 Act binds the Crown

Part 1
Preliminary provisions

4 Purpose

5 Interpretation

6 Extended meaning of breach

Part 2
Electricity industry governance

Subpart 1Who does what

Industry participants

7 Industry participants

8 Transpower is system operator

9 Industry participants to register and comply with Code

10 Exemption from obligation to register

11 Exemption from obligation to comply with Code

Electricity Authority

12 Authority established

13 Membership of Authority

14 Independence of members of Authority

15 Objective of Authority

16 Functions of Authority

17 Statements of government policy

18 Reviews on request by Minister

Security and Reliability Council, and other advisory groups

19 Charter about advisory groups

20 Security and Reliability Council

21 Other advisory groups

22 Application of Crown Entities Act 2004

Rulings Panel

23 Continuation of Rulings Panel

24 Membership of Rulings Panel

25 Function of Rulings Panel

26 Funding of Rulings Panel and remuneration of members

Subpart 2Registration

27 Register of industry participants

28 Transfer of old information to register

29 Registration and requirement to update information

30 Ceasing to be registered

31 Offences relating to registration

Subpart 3Electricity Industry Participation Code

Content and status of Code

32 Content of Code

33 Status of Code

Making and amending Code

34 Content of initial Code

35 Certification of draft Code

36 Code comes into force

37 Making Code accessible

38 Authority amends Code

39 Consultation on proposed amendments

40 Urgent amendments to Code

41 Authority to publish consultation charter

Specific new matters in Code

42 Specific new matters to be in Code

43 Minister may amend Code to include new matters

Other specific content

44 Transmission agreements

Subpart 4Monitoring and enforcement

Authority's powers and procedures

45 Purposes of exercise of Authority's monitoring, investigation, and enforcement powers

46 Authority's monitoring, investigation, and enforcement powers

47 Power to search

48 Privileges protected

49 Authority may suspend trading in case of insolvency

Code enforcement

50 Complaints, appeals, and disputes

51 Interim injunctions

52 Limitation periods for breaches of Code

53 Powers and procedures of Rulings Panel

54 Remedial orders for breach of Code

55 Restrictions on remedies

56 Pecuniary penalty orders

57 Offence to breach certain orders of Rulings Panel

58 Suspension and termination for breach of certain Rulings Panel orders

59 Effect of suspension and termination orders

60 Offences relating to suspension and termination orders

61 Powers in relation to appeals and disputes

62 Orders generally

Appeals

63 Appeal on ground of lack of jurisdiction

64 Appeal on question of law

65 Appeal against certain orders of Rulings Panel

66 How and when appeals made

67 Determination of appeals

68 High Court may refer appeals back for reconsideration

69 Provisions pending determination of appeal

70 High Court may order proceedings be heard in private

71 Appeal to Court of Appeal in certain cases

Part 3
Separation of distribution from certain generation and retailing

Subpart 1Separation of distribution from certain generation and retailing

Purpose and outline of Part

72 Purpose and outline of this Part

Interpretation of Part

73 Interpretation in this Part

74 Meaning of involved in

Ownership separation

75 Ownership separation

Corporate separation and arm's-length rules

76 Corporate separation and arm's-length rules applying to distributors and connected generators and connected retailers

Other rules

77 Use-of-systems agreements

78 Person involved in distributor must not pay for transfer of retail customers to connected retailers

79 No discrimination when paying rebates or dividends

Subpart 2Enforcement and general provisions

Enforcement and penalties for this Part

80 Pecuniary penalties

81 Injunctions

82 Actions for damages

83 Other powers to give directions, reopen agreements

84 Miscellaneous provisions relating to civil proceedings under this Part

85 Application of Commerce Act 1986 provisions

86 Additional proceedings

Territorial application of this Part

87 Application to persons outside New Zealand

Disclosure and reporting to Authority

88 Disclosure of information to Authority

89 Directors must report compliance with arm’s-length rules

Exemptions

90 Exemptions

Application of other Acts

91 Application of Commerce Act 1986

92 Not interconnected under Commerce Act 1986

93 Illegal Contracts Act 1970

94 Substance matters, not form

Part 4
Industry participants and consumers

Subpart 1Dispute resolution

95 Complaints about Transpower, distributors, and retailers

96 Membership of dispute resolution scheme

97 Compliance with rules and binding settlements

98 Offence to fail to comply with District Court order

Subpart 2Financial statements of customer and community trusts

99 Customer and community trusts must prepare and submit for audit financial statements

100 Publication of audited financial statements

101 Auditor of trusts

102 Procedures for annual meeting to appoint auditor

103 Auditor-General to be auditor if no other auditor appointed

104 Offences, enforcement, and application of sections 99 to 103

Subpart 3Continuance of supply

105 Continuance of distributors' supply obligation

106 Cessation and suspension of supply obligation

107 Proposal to supply electricity from alternative source

108 Application of other enactments

Part 5
Miscellaneous

Subpart 1Regulations

109 Regulations identifying industry participants and market operation service provider roles

110 Class exemptions relating to registration and Code compliance

111 Class exemptions relating to membership of dispute resolution scheme

112 Regulations relating to monitoring, investigating, and enforcing Code

113 Regulations about tariffs and other consumer issues

114 Regulations promoting accountability in customer trusts and community trusts

115 General regulation-making power

Subpart 2State-owned enterprise asset reconfiguration and miscellaneous matters

State-owned enterprise asset reconfiguration: General provisions

116 Interpretation for subpart

117 Directions that may be given by shareholding Ministers

118 Process for giving directions

119 Legal effect of directions

Asset reconfiguration provisions in respect of Waitaki Power Scheme

120 Purposes of sections 121 to 126

121 Process for Meridian and Genesis to recommend changes to permit conditions in respect of Waitaki Power Scheme

122 Minister may change permit conditions by order

123 Existing agreements with other parties in respect of Waitaki Power Scheme

124 Reconfiguration of existing agreements

125 Other provisions about directions

126 Interface with Resource Management Act 1991

Asset reconfiguration provision in respect of Whirinaki

127 Whirinaki

Levy of industry participants

128 Levies

129 Consultation about request for appropriation

Specific authorisations for purposes of Commerce Act 1986

130 Specific authorisations for purposes of Commerce Act 1986

Distributors' and grid owners' exemption from liability

131 Distributors and grid owners exempt from liability for certain outages

Subpart 3Transitional and consequential provisions

132 Interpretation

Dissolution of Electricity Commission

133 Electricity Commission dissolved

134 Consequences of dissolution

135 References in documents to Electricity Commission

136 References to reserve generation capacity in resource consents

137 Transferred employees

138 Government Superannuation Fund

139 Complaints, investigations, etc, transfer to Authority

140 References to Electricity Governance Rules 2003 and certain regulations

Rulings Panel

141 Members of Rulings Panel

142 Work of Rulings Panel

Commerce Commission

143 Investigations relating to separation of distribution from generation and retailing

144 Exemptions granted under Electricity Industry Reform Act 1998

Subpart 4Amendments to other enactments

Amendments to Commerce Act 1986

145 Amendments to Commerce Act 1986

146 Interpretation

147 Matters covered by input methodologies

148 Commission's costs in setting customised price-quality path

149 Interpretation for subpart

150 Meaning of electricity lines services

151 Definition of consumer-owned

152 How exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers

153 Administrative settlements with Transpower made before 1 April 2009

154 Proposals for customised price-quality paths

155 New heading and sections 54R and 54S substituted

Transpower grid upgrade plans and capital expenditure proposals

156 New section 54V substituted

Interface with Electricity Industry Act 2010

Amendments to Energy (Fuels, Levies, and References) Act 1989

157 Amendments to Energy (Fuels, Levies, and References) Act 1989

158 Part 2 repealed

159 Purpose of levies

Amendments to Electricity Act 1992

160 Amendments to Electricity Act 1992

161 Purposes

162 Interpretation

163 New section 43A inserted

164 Consequential amendments and repeal of spent provisions

Repeal of Electricity Industry Reform Act 1998

165 Repeal of Electricity Industry Reform Act 1998

Amendments to other enactments

166 Amendments to other enactments

Schedule 1
Material incorporated by reference

Schedule 2
When person is involved in distributor, generator, or retailer for purposes of Part 3

Schedule 3
Arm's-length rules

Schedule 4
Dispute resolution scheme

Schedule 5
Existing agreements in respect of Waitaki Power Scheme

Schedule 6
Amendments to other enactments

Legislative history


The Parliament of New Zealand enacts as follows: